Federal Tax Incentives

Federal tax incentives are available for builders of ENERGY STAR® or Department of Energy (DOE) Zero Energy Ready new homes. These incentives can be obtained in addition to PECO New Home Rebates builder incentives. Builders of ENERGY STAR certified or DOE Zero Energy Ready new homes may qualify for federal tax incentives. Click “Learn More” below, to visit the ENERGY STAR landing page for details on how to qualify.

The table below summarizes the federal tax incentive structure.

The table below summarizes the federal tax incentive structure.
Requirement *Tax Credit
ENERGY STAR Certified 

Single-Family (SF) New Homes National v3.1

Multifamily (MF) New Construction National v1.1

 

$2,500 SF

$500 MF

 

DOE  Zero Energy Ready Certified

Single-Family

Multifamily

$5,000 SF

$1,000 MF

*As part of the Inflation Reduction Act (IRA), the Section § 45L New Energy Efficient Home Credit (§ 45L credit) has been updated and extended through 2032. For eligible homes and apartments (referred to as dwelling units in § 45L) acquired on or after January 1, 2023, the tax credit is now specifically tied to certification to an eligible version of the relevant ENERGY STAR program requirements. Note that a larger tax credit is also available for homes that are certified to DOE’s Zero Energy Ready Home (ZERH) Program.

**Starting in 2025, the minimum ENERGY STAR program versions eligible for the § 45L Credit will increase to v3.2 for single-family new homes and remain v1.1 for multifamily new home construction.